Square Enix physical game sales down in Q1, but digital still ‘strong’

Square Enix has released its latest quarterly results for the three months ending June 30th 2017, and the company’s net sales increased by 11.3 per cent year-on-year to reach 57bn, the company has reported. Operating income, meanwhile, rose by 43.9 per cent to 12.8bn.

The company’s digital entertainment division also showed a growth in net sales last quarter, increasing by 17.7 per cent to hit 44.1bn, while operating income rose to 13.7bn – an increase of 44.9 per cent year-on-year.

However, Square Enix notes this was partly down to the "strong download sales" of previously released catalogue titles such as Nier: Automata, as revenue from packaged games, including both new first and third party titles, actually fell last quarter, prompting a decline in net sales.

This shouldn’t be too much of a problem next quarter, however, as Square Enix will finally be able to take into account the already phenomenal sales of Dragon Quest XI: Echoes of an Elusive Age, which released on July 29th in Japan to the tune of 2m sales across its 3DS and PS4 formats. A western release is expected sometime next year.

Square Enix’s smart devices and PC division continues to do well, however, with its line-up of mobile titles showing "strong performances" compared to this time last year. Sales from Final Fantasy XIV’s latest Stormblood expansion also resulted in a growth of net sales and operating income, as well as an increase in the number of monthly subscribers.